TSX climbs as gold and materials lead while oil's slide drags energy

Canada's benchmark index rose Monday as a sharp drop in crude, driven by hopes for renewed U.S.-Iran talks, eased inflation worries and pushed money into miners and industrials. The S&P/TSX Composite was up 0.9% at 35,979.08 in mid-morning trade, and later gained 332.75 points, or 1.4%, to 35,952.78 heading into the afternoon, a bounce after Friday's 629-point, 1.7% decline.

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Materials led, climbing 3.3% as gold rebounded 2.1%. Gold stocks rose 3.4% by midday, and the December gold contract was up US$70.50 at US$3,969.40 an ounce. Energy was the lone laggard, sliding about 3% to a more than two-week low as the December crude contract fell US$6.96 to US$97.16 a barrel. For Alberta's oil-weighted producers, that was a reminder of how quickly a diplomatic headline can reprice the sector.

Cheaper fuel lifted transport names. Air Canada gained $1.40, or 7%, to $21.60, and Boyd Group Services rose $8.20, or 7%, to $125.46. The TSX Venture Exchange added 1.4% to 815.33. The Canadian dollar held near 71.61 cents U.S.

The macro read was softer. The S&P Global Canada Manufacturing PMI fell to 49.6 in October from 51.5 in September, the first contraction of 2026, as tariffs and geopolitical uncertainty weighed on factories. On trade, U.S. President Donald Trump said his administration has a framework for a new deal with Canada, while Prime Minister Mark Carney called the talks constructive.

Next up: Toromont Industries and Topaz Energy report after the close, and Tuesday's U.S. midterm elections loom over cross-border fiscal and trade policy. Energy's direction will likely track any follow-through in the U.S.-Iran talks.